- Announcing the Sale of Your Business: Common Employee Questions and Concerns (3/19/24)
- How Getting Your Business Valued Shapes its Future (2/20/24)
- Common Challenges to Selling a Business: Business Owner Insights (1/25/24)
- Considering Selling Your Business in 2024? (12/13/23)
- 12 Ideas to Attract and Keep Employees (11/13/23)
- Hope is Not a Strategy…and Private Equity Isn’t Your Escape Route (10/11/23)
- How to Successfully Sell Your Business to an Employee (9/25/23)
Reduce Your Risk
According to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. Scary. You can greatly reduce your risk of failure (or increase your likelihood of success) by buying an existing business. They have cash flow from day one, clients already in place, and a proven business model. But how do you go about doing that? We're so glad you asked!
1. Decide what kind of business you might like to buy. One that provides a service or makes a product? Do you want to work IN the business or ON it? It's generally not helpful to say "I'm open to anything." Due to the confidential nature of business sales, we can't just open a book and show you everything we represent. Our Sellers' businesses would suffer greatly if it was widely known that they are for sale.
2. After signing a non-disclosure agreement (NDA), we will qualify you to help determine what you can afford. You should plan to put 10-20% down ($10,000 - $20,000 down on a $100,000 sale price) if you finance it with debt.
3. Consider using your retirement funds to buy a business. Depending on how your retirement accounts are structured, you may be able to access your own funds tax free and penalty free. We'll help you determine the best funding source for your situation.
4. If we don't have anything that is a good fit in our current inventory, ask us about conducting a Buyer's Search.
Sound a little intimidating? Don't worry, we'll walk you through it every step of the way.
If you want to own a business and increase the likelihood of success, consider purchasing an existing business.
Respond to this blog
Posting a comment requires a subscription.